BATS Global Markets, Inc/Chi-X Europe Limited: A Report on the Anticipated Acquisition by BATS Global Markets, Inc of Chi-X Europe Limited
The Stationery Office, Oct 26, 2012 - Business & Economics - 106 pages
The Competition Commission (CC) has cleared the anticipated acquisition by BATS Global Markets, Inc of Chi-X Europe Limited. Both companies operate Multilateral Trading Facilities which enable market participants (investment banks, brokers and dealers) to trade equities through a single platform as an alternative to trading on exchanges such as the London Stock Exchange.In this final report, the CC confirms its provisional findings published last month and concludes that the acquisition is not likely to result in a substantial lessening of competition in trading services for UK-listed equities. The CC found that customers would have the power to prevent any attempt by the merged company to raise trading fees or worsen service quality, by taking, or threatening to take, their business elsewhere or even potentially sponsoring new entry. Such sponsored entry has occurred in this sector before: large customers have strong incentives to ensure that trading conditions remain competitive.
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A Terms of reference and conduct of the inquiry
Appendix assessed BATS and Chi-X BATS Inc best execution BNP Paribas brokers business plan cash equities charged Chi-X and Turquoise clearing and settlement client connect considered customer base dark books dark trading Deutsche Bank entrant entry and expansion equity trading Europe flow FTSE GETCO investment firms investors launch LCH.Clearnet Lehman Brothers LG Group liquidity providers lit and dark lit book lit on-book lit trading LSE’s LSEG market data market share Market-makers matching engine merged entity MIFID million Morgan Stanley Nasdaq network effects NYSE NYSE Arca NYSE Euronext off-book trading offer on-book operating order book pan-European paragraph proposed merger Quote MTF rebate relevant market revenue securities shareholders SVTS tariff third party told trading activity trading exchanges trading fees trading firms trading of UK trading platform trading services trading venues trading volumes transaction UK equities value and volume value traded x-clear